Question

Please show how to calculate this problem

Advanced Automotive paid $220,000 for a group purchase of land, building, and equipment. At the time of the acquisition, the land had a market value of $115,000, the building $92,000, and the equipment $23,000. Journalize the lump-sum purchase of the three assets for a total cost of $220,000, the amount for which the business signed a note payable. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) caustion the land had a market value of 115,000, the building $2.00 Date Accounts and Explanation Debit Credit Land Building 110,000 88,000 22,000 Equipment Notes Payable 220,000 To record purchase of the assets with note payable.

Answer 1

The journal entry provided above is absolutely correct so i will show the answer and the workings.

Journal entry
Date	Accounts	Debit	Credit
	Land	$ 110,000
	Building	$ 88,000
	Equipment	$ 22,000
	Notes payable		$ 220,000

.

	Land	Building	Equipment	Total
Market Value	$              115,000	$                92,000	$            23,000	$              230,000
Lumpsum amount paid				$              220,000
Allocation of lumpsum amount in ratio of Market value	$              110,000	$                88,000	$            22,000	$              220,000